National Republican., 1887-05-07
LEARNING SOME FACTS.
Chapters in tho History OF the Union
Pacific.

NEW YORK, May 6.-The United States
Pacific railway commission held long
executive session this morning prior to the
resumption OF the examination Of wit
nesses in the Union Pacific railway investi-
cation, at which the newspaper men were
informed nothing was done. Assistant
Treasurer and Secretary James VI. Ham, Of
the Union Pacific, was sworn. He was
treasurer Of the Kansas Pacific up to 1880,
with his Office adjoining the Union Pacific
offices. He said that he became connected
with the Kansas Pacific in 1878 or 1870,
and that the Offices were always connected
with those OF the U nion Pacific, with which
he was connected. The securities In the
pool agreement were deposited with Jay
Gould and Russell Sage as trustees, and are
in their hands now. Mr.. Ham kept the ac-
counts OF the pool. The stock was de-
liyered back to his partners in interest by
MIR. Ham. He knew how to divide 1t, be-
cause he was furnished list, but he could
not tell who furnished the list, and could
not tell what had become Of it. He could
not recall the amount received by any one,
nor that Jay Gould got much more
than all the rest combined. Could
not remember when the pool ceased
to exist, but thought IL was probably after
the consolidation OF the Pacific roads
when Justice Donohue's decree releasing
the Denver Pacific stock from the Kansas
Pacific mortgage securities to the Kansas
Pacific. Mr.. Ham received the stock as
treasurer. No resolution was passed by the
directors authorizing the transfer OF the
stock 10 Jay Gould, Sidney Dillon, or any
one else. But It was transferred to them
in exchange. Mr.. Gould got n consider
able quantity, which was determined by his
interest In the securities which he ex-
changed for the stock. Messrs. Gould,
Clark, and Perkins each got some of the
stock Though Mr.. Gould got more than
either OF the others. From 5000 TO 5000
shares OF the stock were delivered into the
treasury OF the Union Pacific. MIR. Gould
acquired an interest in this stock by the
sale to the Kansas Pacific of the bonds Of
the st. Joseph and Kansas and other branch
roads for which he received these securities.
The st. Joseph and Western had no value
| on the market. The Kansas Central bonds
were not listed, aud Mr.. Ham did not
know that they had value. Did not
know of any deals In them. This COM
| pleted the examina tion of Mr.. Ham.
Judge Dillon asked If the securities ac.
cepted by the Kansas and Pacific for the
Denver stock had proven profitable, 20
| which Mr. Ham replied that every one Of
them bad yielded an income.
Mr.. Ham did not know how II was de.
termined that the Kansas Pacific was get.
ting full value for the stock. The aggregate
| value Of the securities as allowed was
| S3,4G4,0 The st. Joseph and Pacific and
the Kansas and Wabash were afterward
consolidated into the st. Joseph aud
| Western. Mr.. Ham knew nothing about
how long Mr.. Gould had owned them or
what he had paid for them. They were
new bonds, but had no market price. The
road was nearly completed when these
| bonds were issued. 1t was $50 miles long.
| Almon Goodwin, Of the law firm Of Van.
derpoel, Green & Cunning, took the stand.
He conducted the suit to take the Denver
Pacific stock out of the mortgage trust IN
January, 1850. He was engaged by Sage
and Gould, and he was urged to proceed us
speedily as possible. Mr.. Sage Instructed
him that the Kansas Pacific had asked to
have the stock released. He and Mr..
| Gould were trustees, however, and they
desired to have 1t ascertained II they had
any right to do 1t, and added that they did
not want to do It unless II was to be for the
best Linterests of the stock and bond
holders Of the Kansas Pacific. Witness
consulted his partner, Mr.. Vanderpoel, aud
they examined the matter, and concluded
| 1t was all right.
Mr. Goodwin remembered that he cross.
examined Sidney Dillon that Mr.. Dillon
had testified that this stock was valueless
and could be made valuable IL certain
things happened. Mr.. Dillon told him
what these certa in things were.
'Is 1t not true that within very few
days the things which Messrs. Sage, Gould,
| and Dillon did with tnat stock resulted in
their realizing substantially S3,000,0OQY'
asked Mr.. Anderson.
Witness had heard something to that
effect. Unless 1t appeared in the report OF
his cross examination of Mr.. Dillon he did
| not know what was meant at the time by
"certain tn ngs"
Albert 3. Rosenbaum was sworn. He
stated that he had suit with the Union
Pacific last year. He read letters from the
Union Pacific offering him very small
| price for certain income coupon bonds of
the Denver extension, AMI claimed that the
mismanagemeut OF the road was the reason
for the depreciation of values. Mr.. Rosen-
baum had been a California shipper for
twenty years, and he cited among the
acts OF the management, damaging to the
| values, the Issuance OF a circular to ship
pers saying in effect that If they dared to
ship around the Horn, their freight rates
over the Union Pacific would bs doubled.
This had the effect of driving Mr.. Rosen
baum out OF business In 1880. The clrcu
lar was issued by transcontinental lines,
and was intended to force shippers to use
the Union Pacific road.
Mr.. Rosenbaum was quite indignant
Judge Dillon cross sseXamined, and Mr..
Rosenbaum admitted that he never offered
to ship over the road after this circular
was issued.
Judge Dlllon's cross examination of Mr..
Rosenbaum brought out the fact that Mr.
Rosenbaum's bonds had been bought at
from 80 to par, and he had finally got 95 fol-
them. He had had Gland Island bonds that
| he paid or for aud he got par for tn em.
No more testimony will be taken unit
Tuesday next. There are at least twelve
new witnesses to be examined in this city
and 1t is understood that Messrs. Gould
and Sage will not be sworn until the com
missioners have educated themselves as far
as possible regarding the ways and the
workings Of the Union Pacific through tn,
examination Of other W illnesses.